Question

Highlight how Ryanair is focusing on its business strategies to maintain its position in the industry and carefully planning to addressing the challenges.

Task:Conduct a VRIO analysis to determine the resources and capabilities of Ryannair.

Answer 1

Ans : VRIO: Value, rareness, imitability, and organization.

It is the technical method for the evaluation of the company's resources, It is a tool of strategic planning used by firms to make effective business decisions.

Valuable: in this Ryanair needs to check if a resource adds value to the firm, providing the best opportunities or defend against threats. The need to address is the resources valuable to the customer. this can be done by increasing differentiation in the price, quality of the product. It is essential to continuously review the value of resources as the internal and external environment is dynamic. Use human capital management data to hire and retain innovatively, productive employee.  

Rareness: Those resources which can be acquired by very few companies and valuable also become rare products. It grants a temporary competitive advantage, as competitors will quickly realize and can imitate the resource.

Imitability: There can be two ways of imitation this by directly imitating and by substituting the product. but in cases like a trademark, patent here imitation may hard for an organization as it is protected by legal means. Those resources which are hard, rare and valuable gives a competitive advantage like shale gas. for eg., Colgate is hardest to imitate as it is a recognized brand  

Organization: A firm must organize its management system, processes, policies, organizational structure and culture in order to realize the potential of the resources. In this company can go ahead with advertising and boost loyalty through campaigning, reinforce differentiation factor.